When transferring a business to family members, list the critical factors that an effective succession plan needs to consider.
What will be an ideal response?
A. The role of the owner in the transition stage: Will he or she continue to work full time? Part time? Or will the owner retire?
B. Family dynamics: Are some family members unable to work together?
C. Income for working family members and shareholders.
D. The current business environment during the transition.
E. Treatment of loyal employees.
F. Tax consequences.
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